September 14, 2010

Tight Canadian hog supplies and strong demand restore profitability

The Saskatchewan Ministry of Agriculture reports tight live hog supplies and strong demand for pork have helped return most of the province's pork producers to profitability.

The average weekly Iowa hog price for August averaged between 78.08 and 82.29 US per hundredweight while the signature-3 weekly cash price ending August 27 averaged 156.29 per 100 kilogrammes.

Analysts said factors influencing hog prices are the continuing tight supplies of hogs which have forced processors to bid more aggressively for animals and stronger pork demand which has reduced pork stocks in cold storage.

Meanwhile, the number of hogs imported from Canada during July, 488,428 heads, was down 14.7% from a year earlier, according to economists.